Friday, October 16, 2009

Bragging, Ego, Reflection

When my brother in law last visited he asked for stock tip, he did not ask in a very serious manner. His previous visit I'd told him Netflix if it broke above a certain price range, which it did and had since moved up about 30%. He owns Harley, John Deere, and Kroger, every now and then I glance at them and have not been impressed. Well this time I pulled up the chart for Conseco life, CNO. Showed him what I thought was the consolidation around 5, drew a trend line, explained that I thought it was buyable then and there. After the pop it has taken this week, I want to call and brag! I suspect he did not buy any, he is kinda set in his ways. He mentioned waiting for certain price targets to come and then he was going to cash out for CDs.

By being aware of those around us and their investment philosophies we can learn a lot about the psyche of the public. I find some of this instructive, much of it gives me gratititude. First off, solely due to following the price action of the major indices in relation to moving averages, I only experienced a 12% drawdown in 2008. Few people withdrew their funds, they have certainly not moved them back into the market. THose that have done this stock up on guns and ammo, or have gold hoarded ( I am amazed at how much a friend has). They got out worried about the fiat currency system, listened to the news a lot but really had no disciplined method that told them to get out. They also have no disciplined method to get back in the market. That to me is the biggest fault. They have been missing out on the chance to get filthy rich!

Time magazine cover suggests average 401K is valued around 45K? Work harder, save more, spend less people.

A guy at work yesterday, knowing I am interested in retirement accounts, asked me about borrowing from 401K process. Honestly I have no flippin idea how to do this because it is absolutely stupid. Avoid at all costs.

I talked to a gal married to a guy that trades. When they first met, she bragged how he doubled her account in months. Says he also used to daytrade in a group, made a lot of money at it. For some reason he is working for the hospital full time now, you do the math. I know they got out of the market, have not yet gone back in because he is convinced that the market is going to fall apart. DUDE, we have universal worldwide agreement in this rally! Nobody knows when it will end, but it has been a rally. In my opinion, anyone with decently developed analysis could have made some good money.

My current trading is horribly boring. I miss the thrill of big bucks in and out, the hunt, the highs and lows. But I ended up missing the money worse. Post trade analysis has helped me to change finally and I richer and sleeping better for it.

I'd like to get my coworkers rich, being a nurse is really tough at times, the non financial rewards do not often come. If I could figure out some way to add a 401K gadget tracker I would. Real estate is still okay but AF Europac and a MidCap fund are the current leaders.

I have finished the Curtis Faith Turtle book. Good stuff for basic systems people, good methods for their system which could be adaptable without too much effort into an average Joes trading setup. I most liked taking out of it the fact that those that trade for their ego needs will get quashed. I need to be mindful of this and search for ego satisfaction other ways. So much for bragging.

Its early here, time to get down to research.

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